The Council of Ministers approves the revaluation of contributing pensions according to the average CPI, which was 2.5% in 2021
The Council of Ministers gave the green light this Tuesday for the revaluation of the pensions by 2022, already included in the State’s general budgets. The increase will take effect for the purposes of the 1 January 2022 and pensioners will already be entering their benefit in this month’s payroll with the updated tables. The increase for contributing pensions, the most common among the group of pensioners and currently receiving 9.87 million people, will increase by 2.5%, a figure that is due to the average evolution of the IPC during 2021.
Specifically, the formula that the Minister of Inclusion and Social Security, José Luís Escrivá, agreed with employers and trade unions was to calculate the average inflation between November 2020 and November 2021. Which ended up being 2.5%. In other words, the average retirement pension in December was 1,196.2 euros and this January it will rise to 1,245.9 euros, approximately 49.7 Euro average increase. All contributing pensions for widows, temporary disability or orphans will also increase in the same proportion.
The revaluation of pensions based on the average CPI of the previous year is a novelty for the following year that the Government and social agents have agreed. For 2021, the inherited regulations will continue. Pensions rose by 0.9% at the beginning of the year, according to expected inflation for this year. Once the average inflation for twelve months to November is known, pensioners will be compensated this January for the difference between that 0.9% and the 2.5% at the end of the year. The final amount of that ‘paguilla’ will consequently depend on what the pensioner usually asks for and may be between 220 and 340 euros, while for those of widowhood it will be 166 euros.
Minimum pensions will increase by 3%
Two other innovations that have brought in this year’s budgets are the payment of a supplement to close the gender gap. It was previously a variable on the amount of the pension based on the number of children. Now it is an ‘extra’ of 28 euros per month for each of the children and will be received by the spouse with the lowest pension.